Sagility India is set to launch its IPO on 5 November. This significant event allows investors to engage with a leading healthcare services provider. With a price band of ₹28 to ₹30 per share and a total issue size of ₹2,106.60 crore, this IPO is expected to draw considerable interest.
As you consider your investment options, it’s essential to understand the key aspects of Sagility India’s financial health and growth potential.
Here’s a lowdown on the IPO details and aspects investors must consider before deciding
Sagility India IPO Details
| Offer Price | ₹28–30 |
| Face Value | ₹ 10 per Share |
| Opening Date | 5 November 2024 |
| Closing Date | 7 November 2024 |
| Lot Size | 500 shares |
| Total Issue Size (in Shares) | 702,199,262 |
| Total Issue Size (in ₹) | OFS of ₹ 2,106.60 Cr |
| Issue Type | Book Built |
| Listing At | BSE, NSE |
About Sagility India
Sagility India Limited, earlier called Berkmeer India Private Limited, provides technology-enabled solutions for U.S. healthcare payers and providers, offering services such as claims management, care management, and revenue cycle operations. The company operates across five international service locations, including India, the Philippines, the U.S., Jamaica, and Colombia.
Growth Story
Sagility India has grown significantly, expanding its client base and service offerings. In FY 2024, the company processed 105 million claims and managed 75 million interactions, adding 22 new clients. A skilled global workforce and recognition from industry analysts like Avasant and Everest support this growth.
Financial Growth
Sagility India’s financial performance has been robust, with the total income increasing from ₹423.6 crores in March 2023 to ₹478.15 crores in March 2024. The profit after tax (PAT) also saw a rise from ₹143 crore in FY2023 to ₹228 crore FY2024. The company’s earnings per share (EPS) and return on net worth (RoNW) have also improved, reflecting higher profitability and efficient operations.
Key Things About the Sagility India IPO
Objectives of the IPO
Sagility India is raising funds with the aim to list its Equity Shares on Stock Exchanges, enhancing visibility and credibility. The company’s objective also includes facilitating the Offer for Sale of up to 70.2 crore cshares by the promoter selling shareholder, Sagility BV.
GMP
The Grey Market Premium (GMP) for Sagility’s IPO stands at ₹3. Given the price band of ₹30, the estimated listing price is ₹33 (price band + GMP). This indicates a potential gain of 10% per share.
Anchor Investors:
The three main investors in Sagility India include:
- 360 ONE (through Special Opportunities Fund – Series 8 and Monopolistic Market Intermediaries Fund): 1.07% stake for ₹150 crore.
- Avendus Future Leaders Fund II: 0.9% stake for ₹126 crore.
- Adani Properties (Adani Group): 0.14% shares for ₹20 crore.
Other investors who acquired 0.5% shares worth ₹70 crore collectively include Elpro International, Jasub Property Holdings, Jaya Chandrakant Gogri and Rashesh Chandrakant Gogri, PAM Family Trust, Shradha Family Trust, Unmaj Ventures, Uma Priyadarshini Kollareddy and Kollareddy Ranganayakamma.
Listing
The shares are expected to be listed on the BSE and NSE on November 12, 2024.
Shares Reservation
75% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.
SWOT analysis of Sagility India
| STRENGTHS | WEAKNESSES |
| Deep domain expertise in healthcare, particularly revenue cycle management and clinical coding. Robust technology infrastructure and digital tools to enhance efficiency and accuracy. A skilled and experienced workforce, including certified medical coders and registered nurses. Established relationships with US-based healthcare providers and payers. | Significant reliance on the US healthcare market, exposing the company to regulatory changes and economic fluctuations. Intense competition from other healthcare IT companies, both domestic and international The risk of data breaches and cyberattacks could damage the company’s reputation and lead to financial losses. |
| OPPORTUNITIES | THREATS |
| Leveraging emerging technologies like AI and machine learning to improve efficiency and accuracy. Expanding service offerings to include value-added services, such as analytics and consulting. Exploring opportunities for global expansion, particularly in markets with similar healthcare systems | Changes in US healthcare regulations, such as HIPAA and ICD-10. Increasingly sophisticated cyberattacks could compromise the company’s systems and data. US economic downturns could reduce healthcare spending and impact the company’s revenue. |
With Sagility India launching its IPO, investors can consider investing in the healthcare sector. The company’s focus on technology-enabled solutions and its experienced workforce position it well to capitalize on the evolving healthcare landscape.
However, potential investors should carefully consider the risks associated with the company’s reliance on the US healthcare market and the possible impact of regulatory changes and economic fluctuations. Before making an investment decision, conducting thorough research or consulting with a financial advisor to assess the risks and rewards involved is advisable.
Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
